Rex’s loyalty play to come in big win for corporate travel

More competition for high-flyer dollars will bring new corporate sweeteners to Australian skies with Rex also reviewing its existing loyalty program to broaden the offering next year.

Rex has unveiled its new livery on a Boeing 737.

INCREASED competition and a revamped loyalty program from Rex - alongside the latest offers from Qantas and Virgin - will lift corporate sweeteners to new highs in Australian skies from next year.

Rex Airlines deputy chairman John Sharp said the airline was gearing up to flex its regional muscle while introducing “a bit of warmth and country hospitality” on board.

“We have long-term relationships with big corporates and SMEs and we’ll definitely leverage those to promote our new domestic services.

Rex deputy chairman John Sharp

“We are quite confident the full service offering and our ‘thru-fares’ will be attractive for the convenience and price to many businesses, SMEs and regional travellers.”

Rex ‘thru-fare’ is a combined fare for regional city passengers on Sydney-Melbourne flights.

Mr Sharp said the airline was currently reviewing its existing loyalty program for corporates, Rex Biz, which offered two free flights across its network for every 18 paid flights.

“We’ll look at a new frequent flyer program in future with the current one being reviewed. But it’s one step at a time.

“We have been around a long time and we know how to and want to do things properly.”

“There is no definite date (on the loyalty program) but our focus is on running a profitable business,” he said.

Pre-COVID-19, Rex was flying 1.4m passengers annually and has about 1000 employees.

Rex will launch its first Sydney-Melbourne service on March 1, subject to regulatory and other approvals.

Rex’s current fleet on the tarmac at the Cairns Airport. Picture: Brendan Radke

It wants to expand its domestic network to Brisbane and other capital cities by Easter and boost staff count by 400 next year.

Qantas has increased the scope of its frequent flyer program and is also aggressively targeting loyal customers of other airlines. Virgin has matched Qantas’ loyalty offer.

Corporate Traveller, part of the Flight Centre group, says it’s a great time for a new entrant.

“If the situation with COVID-19 remains suppressed and the borders stay open, businesses with tight budgets will have three trusted airlines with more availability, connectivity and prices to choose from come March,” said Jody Loomes, general manager of Corporate Traveller SA.

Corporate Traveller SA’s Jody Loomes at the Adelaide Airport. Picture Mark Brake

”It’s great for business travellers and it’s going to help the economy recover faster. ”Already we are seeing a lot of corporates just really needing to be somewhere and taking what’s available.

“There will be contracts and preferences, but the situation right now is about looking at travel budgets in a cost-conscious environment along with just taking what’s available out there.”